IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/101945.html
   My bibliography  Save this paper

Measuring Energy Efficiency: An Application of Data Envelopment Analysis to Power Sector in Kerala

Author

Listed:
  • Pillai N., Vijayamohanan

Abstract

Traditionally, there are two basically reciprocal energy efficiency Indicators: one, in terms of energy intensity, that is, energy use per unit of activity output, and the other, in terms of energy productivity, that is, activity output per unit of energy use. The enquiry that has proceeded from the problems associated with this method of a single energy input factor in terms of productivity has led to multi-factor productivity analysis. We have here two approaches: parametric and non-parametric. Parametric approach famously includes two methods: the erstwhile popular total factor energy productivity analysis and the currently fanciful stochastic frontier production function analysis; The non-parametric approach is popularly represented by data envelopment analysis. The present paper is an attempt to measure efficiency in electrical energy consumption in Kerala, India. We apply the non-parametric mathematical programming method of data envelopment analysis of the multi-factor productivity approach, and estimate the efficiency measures under the two scale assumptions of constant returns to scale (CRS) and variable returns to scale (VRS); the latter includes both increasing (IRS) and decreasing returns to scale (DRS). Scale efficiency measures are also given to find out whether a firm is operating at its optimal size or not, implying degrees of capacity utilization.

Suggested Citation

  • Pillai N., Vijayamohanan, 2019. "Measuring Energy Efficiency: An Application of Data Envelopment Analysis to Power Sector in Kerala," MPRA Paper 101945, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:101945
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/101945/1/MPRA_paper_101945.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Afriat, Sidney N, 1972. "Efficiency Estimation of Production Function," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 13(3), pages 568-598, October.
    2. G. Boyd & J. F. McDonald & M. Ross & D. A. Hansont, 1987. "Separating the Changing Composition of U.S. Manufacturing Production from Energy Efficiency Improvements: A Divisia Index Approach," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 77-96.
    3. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    4. Patterson, Murray G, 1996. "What is energy efficiency? : Concepts, indicators and methodological issues," Energy Policy, Elsevier, vol. 24(5), pages 377-390, May.
    5. William W. Cooper & Lawrence M. Seiford & Kaoru Tone, 2006. "Introduction to Data Envelopment Analysis and Its Uses," Springer Books, Springer, number 978-0-387-29122-2, February.
    6. Ang, B. W., 2004. "Decomposition analysis for policymaking in energy:: which is the preferred method?," Energy Policy, Elsevier, vol. 32(9), pages 1131-1139, June.
    7. Bossanyi, Ervin, 1979. "UK primary energy consumption and the changing structure of final demand," Energy Policy, Elsevier, vol. 7(3), pages 253-258, September.
    8. Choonjoo Lee, 2010. "An Efficient Data Envelopment Analysis with Large Data Set in Stata," BOS10 Stata Conference 3, Stata Users Group.
    9. B. W. Ang & Ki-Hong Choi, 1997. "Decomposition of Aggregate Energy and Gas Emission Intensities for Industry: A Refined Divisia Index Method," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 59-73.
    10. Yong-bae Ji & Choonjoo Lee, 2010. "Data envelopment analysis," Stata Journal, StataCorp LP, vol. 10(2), pages 267-280, June.
    11. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
    12. Ang, B.W. & Zhang, F.Q., 2000. "A survey of index decomposition analysis in energy and environmental studies," Energy, Elsevier, vol. 25(12), pages 1149-1176.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pillai N., Vijayamohanan & AM, Narayanan, 2019. "Energy Efficiency: A Sectoral Analysis for Kerala," MPRA Paper 101424, University Library of Munich, Germany.
    2. Pillai N., Vijayamohanan, 2019. "Measuring Energy Efficiency: An Application of Stochastic Frontier Production Function Analysis to Power Sector in Kerala," MPRA Paper 101944, University Library of Munich, Germany.
    3. Pillai N., Vijayamohanan & AM, Narayanan, 2019. "Energy Efficiency Indicators: Estimation Methods," MPRA Paper 97653, University Library of Munich, Germany.
    4. Zhou, P. & Ang, B.W. & Poh, K.L., 2008. "A survey of data envelopment analysis in energy and environmental studies," European Journal of Operational Research, Elsevier, vol. 189(1), pages 1-18, August.
    5. Pillai N., Vijayamohanan, 2019. "Measuring Energy Efficiency: An Application of LMDI Analysis to Power Sector in Kerala," MPRA Paper 101981, University Library of Munich, Germany.
    6. Fernández González, P. & Landajo, M. & Presno, M.J., 2014. "Tracking European Union CO2 emissions through LMDI (logarithmic-mean Divisia index) decomposition. The activity revaluation approach," Energy, Elsevier, vol. 73(C), pages 741-750.
    7. Md. Afzal Hossain & Jean Engo & Songsheng Chen, 2021. "The main factors behind Cameroon’s CO2 emissions before, during and after the economic crisis of the 1980s," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(3), pages 4500-4520, March.
    8. Edyta Sidorczuk-Pietraszko, 2020. "Spatial Differences in Carbon Intensity in Polish Households," Energies, MDPI, vol. 13(12), pages 1-21, June.
    9. Li, Hong Xian & Li, Yan & Jiang, Boya & Zhang, Limao & Wu, Xianguo & Lin, Jingyi, 2020. "Energy performance optimisation of building envelope retrofit through integrated orthogonal arrays with data envelopment analysis," Renewable Energy, Elsevier, vol. 149(C), pages 1414-1423.
    10. Kim, Kyunam & Kim, Yeonbae, 2012. "International comparison of industrial CO2 emission trends and the energy efficiency paradox utilizing production-based decomposition," Energy Economics, Elsevier, vol. 34(5), pages 1724-1741.
    11. Lars Wenzel & Andr Wolf, 2014. "Changing Patterns of Electricity Usage in European Manufacturing: A Decomposition Analysis," International Journal of Energy Economics and Policy, Econjournals, vol. 4(4), pages 516-530.
    12. Ang, B.W. & Huang, H.C. & Mu, A.R., 2009. "Properties and linkages of some index decomposition analysis methods," Energy Policy, Elsevier, vol. 37(11), pages 4624-4632, November.
    13. Lin, Yuancheng & Ma, Linwei & Li, Zheng & Ni, Weidou, 2023. "The carbon reduction potential by improving technical efficiency from energy sources to final services in China: An extended Kaya identity analysis," Energy, Elsevier, vol. 263(PE).
    14. Cansino, José M. & Sánchez-Braza, Antonio & Rodríguez-Arévalo, María L., 2015. "Driving forces of Spain׳s CO2 emissions: A LMDI decomposition approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 48(C), pages 749-759.
    15. Fernández González, P., 2015. "Exploring energy efficiency in several European countries. An attribution analysis of the Divisia structural change index," Applied Energy, Elsevier, vol. 137(C), pages 364-374.
    16. Zhou, P. & Ang, B.W., 2008. "Linear programming models for measuring economy-wide energy efficiency performance," Energy Policy, Elsevier, vol. 36(8), pages 2901-2906, August.
    17. González, Domingo & Martínez, Manuel, 2012. "Changes in CO2 emission intensities in the Mexican industry," Energy Policy, Elsevier, vol. 51(C), pages 149-163.
    18. GUPTA Monika & SINGH Sanjay, 2016. "Factorizing The Changes In Co2 Emissions From Indian Road Passenger Transport: A Decomposition Analysis," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 11(3), pages 67-83, December.
    19. Han, Xue & Frey, Gregory E. & Geng, Yude & Cubbage, Frederick W. & Zhang, Zhaohui, 2018. "Reform and efficiency of state-owned forest enterprises in Northeast China as “social firms”," Journal of Forest Economics, Elsevier, vol. 32(C), pages 18-33.
    20. Shahiduzzaman, Md. & Alam, Khorshed, 2013. "Changes in energy efficiency in Australia: A decomposition of aggregate energy intensity using logarithmic mean Divisia approach," Energy Policy, Elsevier, vol. 56(C), pages 341-351.

    More about this item

    Keywords

    Energy efficiency; Kerala; Power sector; Data envelopment; Technical efficiency.;
    All these keywords.

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:101945. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.